2016-18 RESOLUTION 2016-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GRAND TERRACE, CALIFORNIA ADOPTING
AMENDMENT NO. 7 TO THE WASTE DISPOSAL
AGREEMENT BETWEEN THE COUNTY OF SAN
BERNARDINO AND THE CITY OF GRAND TERRACE.
RECITALS
WHEREAS, on February 24, 1998 the City of Grand Terrace ("City") and the County of
San Bernardino ("County") entered into a Waste Disposal Agreement("WDA"); and
WHEREAS, .in April 2012, fifteen (15) WDA cities met and determined it was in
their best interest to'"change the termination date of the Agreement to expire on June 30,
2016; and
WHEREAS, on.December 11, 2012, the City Council approved Amendment No.6,
extending the termination date of the WDA to June 30, 2016; and
WHEREAS, in connection with the on-going administration of the WDA, the
Parties have determined it is in their best interest to change the termination date of the
Agreement to end on June 30,2021; and
WHEREAS, this change in the termination date will assist both the City and the County
in planning for future fiscal years' budgeting of solid waste disposal services and costs; and
WHEREAS, the parties have determined it is in their best interests to apply an annual
fixed WDA renewal discount adjustment of$0.82 per ton for the term of the WDA.
NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF
GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:
Section 1. The City Council finds that all of the above recitals are true and correct
and are incorporated herein by reference.
Section 2. The City Council hereby approves Amendment No.7 of the Waste
Disposal Agreement between the County of San Bernardino and the City of Grand Terrace as
attached hereto as Exhibit 1.
RESOLUTION NO. 2016-18 PAGE 1 OF 13 MAY 24, 2016
AYES: Council Members Hussey, Wilson, Mitchell,Mayor Pro Tern Robles
Mayor McNaboe
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
cNaboe *PatJaCity Cl
I, PAT JACQUEZ-NARES, City Clerk of the City of Grand Terrace, do hereby certify that the _
foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the
City of Grand Terrace held on the 24t'day of May, 2016 by the following vote:
AYES: Council Members Hussey, Wilson,Mitchell, Mayor Pro Tem Robles
Mayor McNaboe
NOES: None
ABSENT: None
ABSTAIN: None
1
Pat Ja - es
City Cle
RESOLUTION NO. 2016-18 PAGE 2 OF 13 MAY 24, 2016
Exhibit 1
WASTE DISPOSAL AGREEMENT
BETWEEN
THE COUNTY OF SAN BERNARDINO, CALIFORNIA
AND
THE CITY OF GRAND TERRACE
DATED: FEBRUARY 24, 1998
County Authorization Date: City Authorization Date:
County Notice Address: City Notice Address:
Solid Waste Management Division
222 Hospitality Lane, 2"d Floor
San Bernardino, CA 92415-0017
Emergency Contact: Emergency Contact:
Arthur L. Rivera
Deputy Director
(909)386-8703
RESOLUTION NO. 2016-18 PAGE 3 OF 13 MAY 24, 2016
AMENDMENT NO. 7 TO THE
WASTE DISPOSAL AGREEMENT
On February 24, 1998, the City of Grand Terrace ("City") and the County of San Bernardino
("County") entered into a Waste Disposal Agreement ("WDA'). The parties hereby amend the
WDA, on the Effective Date as provided herein, by their respective.execution of this agreement
(hereinafter"Amendment').
Recitals
A. The parties have previously entered into the following amendments to the WDA.
Amendment No. 1 to the WDA was to correct-the designated disposal facilities for the
City. Amendment No. 2 was to implement the"Article 1.9 Solid Waste" component of the
County's waste management system and define the City's share of that revenue.
Amendment No. 3 was to increase the annual maximum limits of"Article 19 Solid Waste"
in the County landfill system. Amendment No. 4 allowed the County to charge the fee of
$10.00 per ton (prorated) for identified controllable waste of the City (e.g., roll off
container trucks and.other County/City vehicles such as pickups and dump trucks) and
have such waste subject to being processed in the recycling program. Amendment No.
5 allowed the County to calculate the annual cost of living adjustment earlier in the
calendar year. Amendment No. 6 extended the end.date of the WDA to June 30, 2016.
B. In connection with the ongoing administration of the WDA, the parties have determined it
is now in their best interests to change the termination date to June 30, 2021.
C. This change in the termination date will assist-both the City and the County in planning
for future fiscal years' budgeting of solid waste disposal services and costs.
D. The parties have determined it is in their best interests to apply an annual fixed WDA
renewal discount adjustment of$0.82 per ton for the term of the WDA.
E.. In March 2002, an amendment to the WDA was approved to acknowledge the right of
the County to accept in-County waste from Burrtec Waste Industries, Inc. (Burrtec),
known as Article 19 Solid Waste, at a rate lower than the WDA Contract Rate in
exchange for the County sharing the net revenue generated-from the Article 19 Solid
Waste with the WDA cities based on a formula outlined in the amendment.
F. On June 30, 2013, the County's Operations Contract with Burrtec expired and the Article
19 Solid Waste ceased,to be disposed in the County's Disposal System, thereby ending
the revenue sharing of Article 19 Solid Waste with the WDA cities.
G. The parties agree that there will be benefits to the Disposal System and accordingly to
the County, as the owner/operator of the Disposal System, and to the City, as a user of
the Disposal System, of accepting in-County waste from other non-WDA users of the
Disposal System ata rate lower than the WDA Contract Rate in exchange for the County
sharing the net revenue of in-County waste generated with the WDA cities based on the
-revenue sharing formula from the previous Article 19 Solid Waste.
RESOLUTION NO. 2016-18 PAGE 4 OF 13 MAY 24,2016
NOW.THEREFORE, in consideration of the forgoing recitals and the following covenants and
promises the Parties agree as follows:
1. Amended Section 4.2 CONTRACT RATE. (A) Generally. This section is amended in its
entirety to read:
SECTION. 4.2. CONTRACT RATE, (A) Generally. Effective January 1, 1998, the
Contract Rate payable by each Franchise Hauler, shall .be $28.50.per ton, subject to
potential adjustment necessary to reflect the circumstances set forth below:
(i) increased costs incurred by the County (in excess of available insurance_
proceeds) due. to the occurrence of one or more Uncontrollable
Circumstances, including Changes in Law; and
(ii) escalation during the Term of this Agreement.calculated in accordance
with Section 4.2(B).
Prior to adjusting. the Contract Rate as a result of any of the circumstances
described in Section 4:2(A)(i), the County shall utilize the following remedy: reduce the
costs of operating the Disposal System to the extent practicable.
Any adjustments to the Contract Rate permitted by Section 4.2(A)(1) shall be
calculated by the. County-to reflect the actual costs or expenses of addressing the
circumstance or circumstances pursuant to which the adjustment is authorized, and shall
also reflect, where applicable, the then remaining capacity in the Disposal System. Such
adjustment may not reflect circumstances other than the circumstances-described in
Section 4.2(A)(i).
2. Amended Section 4.2. CONTRACT RATE. (B)Calculation of Escalation. This section is
amended in its entirety to read:
SECTION 4.2. CONTRACT RATE. (B) Calculation of Escalation. For purposes of
Section 4.2(A)(ii), the Contract-Rate-.shall be adjusted in accordance with the formula
described in this Section each July 1 during the term hereof, commencing:July 1, 1999.
The adjustment shall be calculated in accordance with the following formula:
Contract Rate= Fixed Portion + [Escalating Portion x Index]
Where,
Fixed Portion = $10.87
Escalating Portion = $17.63
Index= Price Index, which shall be determined in accordance with the
following formula:
1 .7[PPI,/PPIJ +.3[EII/EIS]
PPI, = The Producer Price Index, Industrial Commodities, as published by the
United States Department of Labor Statistics in the publication. Producer
RESOLUTION NO. 2016-18 PAGE 5 OF 13 MAY 24,2016
t
Price Indices, Table 6, for the month of February in the year the
adjustment is being made (e.g., the first adjustment will use the February,
1999 value)
PPI2= Producer Price Index, Industrial Commodities for the month of February,
1998
Ell = Employment Cost Index, Compensation, Private Industry Workers, as
published by the United States Department of Labor Statistics in the
publication Monthly.Labor Review, Table 22, for the last quarter of the
year preceding the year the adjustment is being made (e.g., the first
adjustment.will use the last quarter, 1998 value)
E12= Employment Cost Index, Compensation, Private Industry Workers
established for the last quarter of 1997
The adjustment effective on July 1, 2011, and all subsequent adjustments, will be
calculated as provided above, except that the parameters of the Index (i.e., 1) shall be
defined as follows:
PPI, = The Producer Price Index, Industrial Commodities Commodity Data, as
published at the United States Department of Labor, Bureau of Labor
Statistics web site, Series ID WPU03 thru 15 for the month of September
in the year,prior to the year for which the adjustment is being made (e.g.,
the adjustment effective July 1, 2011 will use the September 2010 value)
PPI2= Producer Price Index, Industrial Commodities Commodity Data for the
month of September, 1997
El, = Employment Cost Index, Total Compensation, Private Industry All
Workers, as published at the United States Department of Labor, Bureau
of Labor Statistics web site, Series ID: CIU20100000000001 for the last
quarter of the year preceding the year for which the adjustment is being
made (e.g., the adjustment effective July 1, 2011 will use the third
quarter, 2010 value)
E12= Employment Cost Index, Compensation, Private Industry All Workers, as
published at the United States Department of Labor, Bureau of Labor
Statistics web site, Table 3, established for the third quarter of 1997
Effective July 1, 2016, and each July 1 thereafter during the term of the Agreement, the
Contract Rate adjustment will be calculated as provided above, except that an annual
fixed WDA renewal discount adjustment of$0.82 per ton will be applied after the annual
Cost of Living Adjustment (COLA) adjustment. The Calculation of Escalation for July 1,
2016 through June 30, 2017 results in a $37.82 per ton rate. After including the WDA
renewal discount adjustment of$0.82 per ton, the Contract Rate will be $37.00 per ton,
effective July 1, 2016 through June 30, 2017.
If at any either the Employment Cost Index or the Producer Price Index is no longer
published, or are otherwise unavailable, then the COLA shall be determined by using
RESOLUTION NO. 2016-18 PAGE 6 OF 13 MAY 24,2016
r
standard official.statistics measuring changes to, respectively, labor costs and cost of
materials, as the parties shall mutually agree.
3. Add Section 4.6 to the WDA to read:
SECTION 4.6. COUNTY D18POSAL SYSTEM REPORT OF ANNUAL FINANCIAL
STATEMENTS. Beginning July 1, 2016, the County will conduct an annual meeting,
inviting .all WDA Cities/Towns to participate, within-45 days of receipt of the San
Bernardino County Department of Public Works - Solid Waste Management Division
Annual Financial Statements from the County's Auditor-Controller/Treasurer/Tax
Collector's Office (typically submitted to the Solid Waste Management Division no later
than 45 days after the first of each .calendar year) to provide annual revenue and
expense statements, fund. balance and net .asset values, from the prior fiscal year,
related to the County's Disposal System. The first meeting is.anticipated to be held in
February 20-17,to review the Fiscal Year 2015-2016 Financial Statements.
4. Amended Section 6.1 EFFECTIVE DATE AND TERM (A) Term This section is
amended in its entirety to read:
SECTION 6.1. EFFECTIVE DATE AND TERM. (A) Term. This Agreement shall
become effective, shall be in full force and effect and shall.be legally binding upon the
City and the County from the Contract Date and-shall continue in full force and effect
until June 30, 2021, unless earlier terminated in accordance with its terms.
5. Add Section 8 to the WDA to read:
SECTION 8. IN-COUNTY NON-WDA SOLID WASTE.
SECTION 8.1. Definition of In-County Non-WDA Solid Waste. "In-County Non-
WDA Solid Waste" is defined as the.solid waste which may be delivered-to the Disposal
System by other Non-WDA users ("In-County Users") of the Disposal-System, including,
but not limited to, other Non-WDA cities in the County, sanitary districts, Transfer
Stations or Independent Haulers, that is:
(1) allowed to be disposed of in the Disposal System pursuant to federal,
state and local laws and regulations;
(ii) not being delivered to the Disposal System as of June 30, 2016; and
(iii) delivered to the Disposal System in transfer trailers.
SECTION 8.2. Limited Waiver:of City's Rights Under Waste Delivery Agreement
and Right of County to.Accept In-County Non-WDA Solid Waste. The parties agree that,
for the term of any contract with In-County Users (including any extensions of term) the
County may accept In-County Non-WDA Solid Waste from In-County Users for disposal
in the Disposal System in the amount determined by the County. Upon payment of the
In-County City Fee (the WDA cities' portion of the In-County Non-WDA Disposal Fee
charged to the In-County Users) and satisfaction of the other requirements of this
Section 8,.the County will not be required to offer City a Contract Rate equal to the In-
County Non-WDA Disposal Fee (defined as the disposal-fee paid by the Non-WDA In-
County Users with disposal agreements with the County) in accordance with Section
RESOLUTION NO. 2016-18 PAGE 7 OF 13 MAY 24, 2016
3.5(A) of the WDA, provided that such acceptance of In-County Non-WDA Solid Waste
will not impair the rights of the WDA Cities under:the provisions of Section 3.5(B) of the
WDA.
SECTION 8.3. Limited Waiver.of County's Rights Under Waste Delivery
Agreement and Right of County to Accept In-County Non-WDA Solid Waste The parties
agree that;.for the term of any contract with In-County Users (including any extensions of
term) the County agrees-to accept In-County Non-WDA Solid Waste from In-County
Users for disposal in the Disposal System only upon payment of the In-County City Fee
and satisfaction of the other requirements of this Section 8 of the WDA.
SECTION 8.4. Calculation of Net Per Ton In-County Non-WDA Disposal Fee. For
purposes of this Section, the Net Per Ton In-County Non-WDA Disposal Fee shall
consist of the In-County Non-WDA'Disposal Fee,'then in effect, under the terms of any
contract with In-County Users, less the following.payments:
(i) the amount of the required payment to the County's Operations
Contractor for disposing of such In-County Non-WDA Solid Waste then in
effect under the terms of the County's Waste Disposal System Operations
Contract (if the County's Operations Contractor exceeds the Annual
Baseline Tonnage of 1,260,236 tons for disposal, then the Operations
Contractor's disposal rate of $6.40 per ton as of July 1, 2016, and
adjusted annually thereafter, will be included in the calculation of the Net
.Per Ton In-County Non-WDA Disposal Fee);
(ii) the other specified payments to governmental agencies in the amounts
then required (including any newly required payment or any payment
made in substitution of an identified payment); and
(iii) the amounts representing the allocation of costs for closure and
postclosure maintenance:and expansion costs (in the amounts set forth
on Exhibit B,.such amounts to be adjusted for Cost of Living increases in
the same percentage amount as the actual change made to the per ton
disposal fee charged by the County to the Cities which have a WDA with
the County pursuant to .the "Calculation for Escalation" contained in
Section 4.2(B)of the WDA).
Formula: In-County Non-WDA Disposal Fee
Less Payment under the Waste Disposal System Operations Contract to the
Operations Contractor (If the County's Operations Contractor exceeds
the'Annual Baseline Tonnage of 1,260,236 tons for disposal, then the
Operations Contractor's.disposal rate of $6.40 per ton as of July 1,
2016, and adjusted annually thereafter, will be included in the
calculation of the Net Per Ton In-County Non-WDA Disposal Fee).
Payment to CalRecycle
Payment to the Local Enforcement Agency
Host Fee Payment to the City-of Fontana
Host Fee Payment to the City of Rialto
Any other payment required to be made to local, State.or Federal
Agencies-relative to the disposal of solid waste or fees collected
RESOLUTION NO. 2016-18 PAGE 8 OF 13 MAY 24,2016
relative.to such disposal
Allocation of costs for Closure and Postclosure
Allocation of costs for expansion (construction of additional capacity)
Equals Net Per Ton In-County Non-WDA Disposal Fee
Exhibit B attached hereto is.a draft example of the distribution of:the WDA Cities' share
of the Net Per Ton In-County Non-WDA Disposal Fee County revenue generated from
Non-WDA In-County Users based on an example of a $27.00 per ton In-County Non-
WDA Disposal Fee. Exhibit B also outlines the current adjustments used to calculate the
Net Per Ton In-County-Non-WDA Disposal Fee. These adjustment amounts are subject
to annual COLA adjustments effective July 1, 2016 and each July ls` thereafter during
the term of this Agreement.
SECTION 8.5. Allocation of In-County. City Fee. In consideration of the
agreements of the City hereunder, the County will pay to the WDA Cities, in the
aggregate, 50% of the.Net Per Ton In-County Non-WDA Disposal.Fee for each ton of In-
County Non-WDA Solid Waste accepted for disposal at the Disposal System. Such fee
is referred to herein as the"in-County City Fee". The remaining 50% of the Net.Per Ton
In-County Non-WDA Disposal Fee is being retained by the County. The In-County City
.Fee may be used by each city/town as it shall deem appropriate, in its sole discretion.
The In-County City Fee shall be further allocated among each of the WDA.Cities on the
basis of two separate criteria:
(1) 50% of the In-County City Fee.shall be.divided equally among-the WDA
Cities, without regard for any other criteria; and
(ii) 50% of the In-County City Fee shall be divided among the WDA Cities
based on population, on a per capita basis, as published by the California
Department of Finance, as of each May 1, each year during the term of
the WDA.
The City's share of the In-County City Fee shall be paid,to City in quarterly payments,
within forty-five (45) days after the end of the calendar quarter (i.e., March, June,
September, and December).
This Section 8 refers only to those waste disposal agreements with In-County Users that
have a Contract Rate less than the WDA Contract Rate.
This Section 8 shall be in effect beginning July 1, 2016.
6. Effective Date. This Amendment shall be effective if and only when all fifteen
cities/towns listed on Exhibit A have each-adopted and executed a counterpart of this
Amendment No. 7 (the amendment number may differ for each city/town listed on
Exhibit A) and such amendment has been adopted and executed by the County on or
before June 30, 2016. In all events, the conditions in the forgoing sentence shall occur
otherwise this Amendment No. 7 shall be null and void and without any effect
whatsoever.
RESOLUTION NO. 2016-18 PAGE 9 OF 13 MAY 24,2016
7. No other amendments. Except as modified in this Amendment (or in any prior
Amendments all other terms and conditions of the WDA including without
( )) , i lu g limit those
contained in any prior Amendment, shall remain in full force and effect.
RESOLUTION NO. 2016-18 PAGE 10 OF 13 MAY 24,2016
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
officers or representatives as of the day and year first above written.
COUNTY OF SAN BERNARDINO
(Print or type name of corporation,company,contractor,etc.)
► By ►
James Ramos, Chairman, Board of Supervisors (Authorized signature-sign in blue ink)
Dated: Name
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)
DOCUMENT HAS BEEN DELIVERED TO THE Title
CHAIRMAN OF THE BOARD (Print or Type)
Laura H.Welch Dated:
Clerk of the Board of Supervisors
of the County of San Bernardino
'By Address
Deputy
Approved as to Legal Form Reviewed by Contract Compliance Presented to BOS for Signature
► P 0-
Julie Surber,Deputy County Counsel David Doublet,Chief Engineer Gerry Newcombe,Department Head
Date Date
Date
RESOLUTION NO. 2016-18 PAGE 11 OF 13 MAY 24,2016
EXHIBIT A
CITIES/TOWNS WITH-A WASTE DELIVERY AGREEMENT
WITH THE.COUNTY OF SAN BERNARDINO
OFFERED THIS AMENDMENT MARCH 2O16
FOR AN AGREEMENT END DATE OF JUNE 30,2021
1. ADELANTO
2. APPLE VALLEY
3. BARSTOW
4. BIG BEAR LAKE
5. COLTON
6. FONTANA
7. GRAND TERRACE
8. HESPERIA
9. HIGHLAND
10. LOMA LINDA
1.1. RIALTO
12. TWENTYNINE PALMS
13. VICTORVILLE
14. YUCAIPA
15. YUCCA VALLEY
RESOLUTION NO. 2016-18 PAGE 12 OF 13 MAY 24,2016
0
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O
z Proposed Annual Burrtec In-County Non-WDA Waste 01/01/15 MVSL Host MVSL Total
Z (100,000 TPY volume) 1st Half of Galif. R PPer Capita 2nd half of City Fee Per .Host Fee+
City City Fee Flat City Fee Population % City Fee Total Ton A19 Share
N
Disposal Fee $2.OQ 1 Fontana 6.67% $12,973.33 204,312 22.78% $44,336.26 $57,309.59 $217,000 $274,310
Ops Contract0� �
2 Victorville 6.67% $12,973.33 121,168 13.51% $26,293.78 $39,267.12
00 Calrecycle Fee 3 Rialto 6.67% $12,973.33 102,092 11.38% $22,154.24 $35,127.57 $217,000 $252,128
LEA Fee 4 Hesperia 6.67% $12,973.33 92,1�77 10.28% $20,002.66 $32,975.99
Fontana Host Fee 5 Apple Valley 6.67% $12,973.33 71,396 7.96% $15,493.13 $28,466.46
Rialto Host Fee 6 Colton 6.67% $12,973.33 53,384 5.95% $11,584.47 $24,557.81
Other State,Local fees $0.00 7 Highland 6.67% $12,973.33 54,332 6.06% $11,790.19 $24,763.52
Closure and Post-Closure $3.28 8 Yucaipa 6.67% $12,973.33 52,942 5.90% $11,488.56 $24,461.89
Expansion Costs $4.53 9 Adelanto 6.67% $12,973.33 33,084 3.69% $7,179.32 $20,152.65
'b Total Adjustments ($15.88) 10 29 Palms 6.67% $12,973.33 25,846 2.88% $5,608.65 $18,581.99
11 Barstow 6.67% $12,973.33 23,407 2.61% $5,079.38 $18,052.72
Net In-County Non-WDA Disposal Fee $11.12 12 Loma Linda 6.67% $12,973.33 23,751 2.65% $5,154.03 $28,127.36
13 Yucca Valley 6.67% $12,973.33 21,355 2.38% $4,634.09 $17,607.43
W In-County City Fee(50%) $5.56 14 Grand Terrace 6.67% $12,973.33 12,353 1.38% $2,680.42 $15,653.75
15 Big Bear Lake 6.67% $12,973.33 5,165 0.58% $1,120.82 $14,094.15
�- Example of In- Per Ton
W County Waste TPY City Fee Annual City Fee 100.00% $194,600.00 896,763 100.00% $194,600.00 $389,200.00 $434,000 $526,437
San Bernardino 70,000 $5.56 $389,200
County Benefit
Total 70,000 $389,200 Rate Adjustment WDA Share Net
$27.00 ($15.88) ($5.56) $5.56
Even Distribution 50% $194,600 TOTAL $389,200.00
Per Capita Distribution 50% $194,600
If the County's Operations Contractor exceeds the Annual Baseline Tonnage
of 1,260,236 tons ford is posa I,then the Operations Contractor's disposal
rate of$6.40 per ton as of July 1,2016,and adjusted annually thereafter,
will be included in the calculation of the Net Per Ton In-County Non-WDA
N Disposal Fee.
N
O